“All gold kilo bar inventory at Malca Amit and Brinks, Inc. 9999 fineness comprise 90% to 95% of total inventory“ Of total inventory at Brinks, Inc., the gold kilo bars of. inventory consists of gold kilo bars of both. “Gold kilo bar inventory at Malca Amit are all minimum.
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Since this data is average monthly inventory, if there were regular arrivals and withdrawals of kilobar stocks throughout the monthly periods being measured (as can be seen with the Brinks Hong Kong vault stocks after the CME contract was launched in March 2015), then the average data could have, to some extent, understated the daily activity of kilobar movements in these vaults. has provided average monthly inventory levels of gold kilo bars from January 2011 through November 2014."
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“Malca-Amit has provided average monthly inventory levels of gold kilo bars from June 2012 through November 2014. So with these two datasets we have a window of transparency into the Brinks and Malca-Amit Hong Kong kilobar holdings for the years 2011 – 2014. The Malca-Amit monthly data sequence commenced in June 2012, while the Brinks data was provided from January 2011 onwards. What the file shows, in the ‘ Analysis of Deliverable Supply‘ section (pages 16-19 of the pdf) is that both Malca-Amit Hong Kong vault and Brinks Hong Kong vault were storing increasingly large quantities of gold kilobars throughout the second half of 2013 and into 2014, with Malca-Amit storing up to 110 tonnes of kilobars in November 2014, the final month of the dataset.Īt the same point in time, Brinks in Hong Kong was storing 49,000 kilobars, i.e. On 8 January 2015, the CME published a file containing Brinks and Malca-Amit historical bar volumes up to November 2014. On 6 January 2015, CME approved both the Brinks and the Malca-Amit vault applications for the kilobar contract (see exhibits 1 and 2 here), but the HKIA and Via Mat applications, at that time, remained unprocessed (or unapproved).Īs part of the CME/CFTC due diligence on the Brinks and Malca-Amit vaults and the estimation of position limits for the gold kilo contract, Brinks and Malca-Amit provided historic monthly gold bar volumes data to CME sometime in the fourth quarter of 2014 so that CME could gauge eligible (kilobar) inventory levels (or deliverable supply). Three months later on 11 December 2014, CME issued a notice that Malca-Amit had also applied for vault approval for the Hong Kong kilobar gold futures contract (see official CME notice here). Note that HKIA is an abbreviation for Hong Kong International Airport.
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On 11 September 2014, Brink’s Global Services, USA, Inc, HKIA Precious Metals Depository Limited, and Via Mat Management AG all applied for vault approval for the CME Hong Kong kilobar gold contract (see official CME notice here). CME Vault Inventory AnalysisĪs part of the 2014 pre-launch operational procedures for the CME’s Hong Kong gold contract, the CME analysed the vault inventories of the storage companies that were interested in having their vaults approved, and the CME then submitted various documents to its commodities regulator, the US CFTC. CME announced a market maker program on 8 January 2015 whereby “Participants must quote continuous two-sided markets in the applicable Product, at predetermined average bid/ask spreads and minimum quote sizes", the product being the “Gold Kilo (“GCK”) futures that are traded on the CME Globex Platform." On 16 April 2015, CME modified its market maker program, by increasing the number of designated market makers from 10 to 12. Note that most of the trades on this contract are executed OTC through CME appointed market makers, so will not appear as exchange trading volume in CME market data statistics. This contract is physically deliverable at various Hong Kong precious metals vaults. In March 2015, the CME Group launched a Hong Kong based gold kilo futures contract. It’s also worth looking at where these gold vaults in Hong are actually located.
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As a further step in this process, it’s worth taking a look at the substantial evidence of these kilobars either being accumulated, or passing through, vault locations in markets such as the Hong Kong gold market. The article “ From Good Delivery bars to Kilobars – The Swiss Refineries, the GFMS data, and the LBMA" examined the mountain of evidence concerning the known Swiss conversion of Good Delivery bars into kilobars for export to gold markets in the East.